Pathfinders – David and Goliath
Possibly one of the least attractive neologisms of the modern tech era is the word ‘enshittification’. But its coiner, science fiction author and post-scarcity activist Cory Doctorow, doesn’t much care. It’s an ugly word for an ugly thing. And once you are aware of it, you can’t unsee it, because it’s everywhere.
It all starts with a basic and age-old capitalist conundrum. How, as a manufacturer or service provider, can you come to dominate the market and crush all the competition? If you are hopelessly naïve, you might plan to do it by having the best quality product. An easier way, as practised by the likes of Amazon, Uber, Shein, Temu, and many others, is to borrow vast amounts of venture capital (VC) in order to sell at a loss, for long enough to undercut and wipe out the opposition. Then, when you’re the last company standing, the fun can really start.
Your VC-funded product doesn’t need to be perfect, just better and cheaper than the rest. People will flock to it, never suspecting a thing. After all, don’t we live in a world of limitless improvement? That’s how capitalism works, right?
And thus, you conquer the market by making your customers 100 percent happy. You’ve hit peak product. Nothing to change. Nothing more to do. Just sit back and watch the direct debits roll in.
In theory, anyway. Degrowthers and Doughnutters argue that the finite planet can’t afford infinite growth, but what if the economy could achieve a ‘sweet spot’, neither growing nor shrinking, that observes environmental boundaries? All manner of sustainable social benefits could flow from that. It’s a seductive idea. But capitalism is not a static system. It has its own laws of motion. Nobody has the choice to stand still. If you’re not racing ahead, you’re losing ground to the competition. Eat their profits, or they’ll eat yours. If the system isn’t racing ahead, there are no new profits to attract new investments. It either grows, or it withers.
And let’s not forget that you achieved peak product and market dominance at a loss. First you need to claw back those losses, and then your Silicon Valley VC investors will want a big fat return on top. But you’ve already maxed out the market. Where do you go from there? The answer, the only possible answer, is enshittification. Here’s how it works.
You’ve locked in your customers and killed the competition, so now you can price-gouge them. But it doesn’t stop there. Instead of one-off sales, you force subscription models on them so that they have to keep paying forever. If you run a streaming service, open up new income by riddling it with adverts your customers have to pay extra not to see. If it’s a social media platform, collect oceans of personal data to sell to third parties. If you own a phone product, issue updates that make it progressively ‘laggy’ until the customer surrenders and buys a newer model. If you own an electric car company, entice buyers in with fancy software services and then save money by shutting them down. If you own an operating system, design a new version that won’t work on existing computers, forcing everyone to chuck theirs in landfill and buy a new one. Cram it with unremovable resource-draining bloatware and charge extra for a ‘premium’ clean version. Build in intrusive and interfering AI that nobody asked for, with forced logins for simple desktop tools. Add a handy ‘Recall’ function that photographs their desktop every second, including all their passwords, website visits, personal messages, Tinder profiles and online banking details, and stores that information in your company servers where it’s a target for hackers. Ignore the protests. You know what your customers need better than they do. And besides, you’ve fired all your human customer service reps so now the whingers and wailers have to navigate a tortuous odyssey through concentric rings of automated responses and AI chatbots. In short, start with customer satisfaction, end with customer extraction, which Chinese scammers call ‘pig-butchering’. Lock in the suppliers too, and repeat up the chain.
Windows 11 is getting furious blowback for being enshittified. Users are turning in disgust to Linux, which is free, has no viruses and runs on any old machine with a fraction of the resource requirements. Others are resurrecting the antiquated Windows 7, now topping lists on pirate bittorrent sites. Piracy itself, once neutralised by the ease and reach of ad-free Netflix, is now resurging as the streamer market has fractured into a proliferation of platforms, each demanding your money while thrusting ads at you. The subscription model backfires as customers adopt the same cynicism as the corporations: ‘If buying is not owning, then piracy is not stealing’. The double standards are obvious to many: ‘If people downloading a song are criminals, what are the CEOs of AI companies using the entire internet to train their LLMs?’.
Last month the Norwegian Consumer Council released a video of someone cutting holes in socks, and sawing legs off tables to make them wobbly. The video was part of a global campaign to draw attention to the ‘deliberate degradation of a service or product’, urging politicians to take action against enshittification, including enforcing data protection, breaking digital monopolies, and giving consumers ‘more power to control, adapt, repair and alter the products they already own’. The council admits it’s a David and Goliath battle, ‘but… David won in the end, right?’.
Doctorow isn’t claiming he’s discovered some new phenomenon. He’s savvy enough to know how the world works. Enshittification is not just about how profit sabotages tech development, making things worse instead of better. It’s really a metaphor for capitalist production itself, which has generated eye-watering wealth yet imposes poverty on billions. In this version of the bible story, David is the bad guy, the tiny rich elite, while Goliath is the world working class, the sleeping giant that needs to wake up.
PJS